MathGames produces two electronic, handheld educational games: Fun with Fractions and Count Calculus. Data on these products follow.
| Fun with Fractions | Count Calculus |
Production volume | 150,000 units | 10,000 units |
Components | 450,000 parts | 100,000 parts |
Direct labor hours | 15,000 DLH | 2,000 DLH |
Packaging materials | 150,000 boxes | 10,000 boxes |
Shipping cartons | 100 units per carton | 25 units per carton |
Machine setups | 52 setups | 52 setups |
Machine hours | 5,000 MH | 2,000 MH |
Additional data from its two production departments follow.
Department Driver Cost | ||
Assembly department |
|
|
Component cost | Parts | $495,000 |
Assembly labor | Direct labor hours | 244,800 |
Maintenance | Machine hours | 100,800 |
Wrapping department |
|
|
Packaging materials | Boxes | $460,800 |
Shipping | Cartons | 27,360 |
Machine setup | Setups | 187,200 |
Required
1. Using ABC, determine the cost of each product line.
2. What is the cost per unit for Fun with Fractions? What is the cost per unit of Count Calculus?
3. If Count Calculus sells for $59.95 per unit, how much profit does the company earn per unit of Count Calculus sold?
4. What is the minimum price that the company should set per unit of Fun with Fractions? Explain.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.